LAHORE, Sept 12: The government is no more interested in producing ethanol fuel from molasses after being influenced by strong oil lobby in the country. The Pakistan Sugar Mills Association (PSMA) claimed here on Monday and also convened a meeting of its central executive on Tuesday (today) to discuss the situation.

“The industry has made investment of over $1 billion and now the government is delaying the entire project under pressure from the strong oil distribution companies,” it said. President Gen Musharraf has approved a policy of production of ethanol fuel from molasses in January 2005 in order to reduce fuel prices in the country, it said.